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4. That, if not admitted under the conditions of Resolution 10, the remuneration of labour should for the first three months of service be slightly below that ruling in the open market, and after the expiry of that time should be 50 per cent, less than the market rate. In computing the remuneration, rent and other cost of living should also be reckoned at current rates and prices. 5. That, with the exception of what is required to supply immediate and pressing wants, no payment in respect of labour performed should be made to any person not an officer of the department until such person is leaving the settlement. 6. As it is manifest that when the breadwinner of a family of small means is forced to seek their support away from his home he and the other members of the household with him suffer increased hardship and loss by this division of their resources, and in order to prevent this, provision should be made on the settlements for domestic life. 7. That operations on the settlements should be chiefly directed towards supplying the daily wants of the people living there, and with that view, and also with the view of making the employment as far as may be suitable to the various capacities of the residents, the industries carried on should be as numerous as possible : in the attainment of these ends locality, soil, and other conditions favourable would require to be carefully selected. 8. That, if practicable to do so, whenever it became apparent that the use of machinery would be more profitable than hand-labour, such machinery should be introduced, and the settlements should be of such area as would admit of this being done. 9. That as the restoration of our forests is a work of great national importance, it might be undertaken as an adjunct to the State settlement, and possibly other improvements on Crown lands (in some districts, at any rate) might also be carried out. This would give occupation to men at seasons of the year when work on the settlements was slack. 10. The settlements, in the matter of instruction, should have a technological side, where the principles which underlie the practical lessons received on the farm might be further illustrated and explained. Persons with little cash and almost devoid of knowledge regarding agricultural pursuits, but who are desirous of settling on small sections of land in the country, might avail themselves of this education, and should be allowed a twelve months' residence on the settlement with full market rate of pay. All the money so earned (over and above that specified in Resolution 4as being the earnings of temporary residents) to be paid by the Labour Department at the request of the intending settler either for land or improvements on the land when taken up. In the event of no land being taken up, payment to be made for the whole period of twelve months in accordance with the arrangement set forth in Regulation 4. 11. That, with the view of facilitating communication between those who are in search of work and those who are in want of services, and also with the view of making our statistics regarding the conditions of labour more accurate and complete, it is expedient— (a.) That private labour bureaux and registry-offices should be required to keep on their register of applicants for services or for employment, in addition to names and addresses, in the case of an employer, the nature and probable duration of the work required to be performed; and, in the case of an applicant for employment, his age, calling, the names of his late employers, and such other particulars as can be obtained regarding his prospects of re-employment or of getting other work. (b.) That a statement of the information so obtained should periodically be forwarded to the Government Labour Bureau. 12. That, in order the better to provide for the less efficient labour which falls to the lot of Charitable Aid Boards to deal with, it is suggested that these Boards should utilise this labour by establishing and equipping settlements on similar lines, but on a more modest scale. Provision might here be made for the cottage life and permanent residence of poor people, who would otherwise be compelled to endure the stir and drill and routine which is inseparable from large institutions, and to put up with which must be a grievous wrench to the feelings of many old people. In order, however, the better to secure uniformity of method and procedure, and also to secure that knowledge and direction which only a department of State can give, it would be necessary to place the more robust of this second-class labour under the management and supervision of an officer of the Government, the expense of management to be a charge on the charitable-aid fund of the district. 13. That, with a view of having the regulations governing the settlements properly observed, and also with -the view of protecting the Labour Department against undue pressure to have the same relaxed or weakened, the said regulations should be embodied in a Bill and passed into law. 14. Industrial Settlements.— By industrial settlements, as distinct from State institutions, and such as are referred to in the order of reference, the Committee understand a permanent settlement of working-class families who have combined their capital and registered themselves as a body corporate for the purpose of carrying on industrial operations on a principle of collective ownership, which may or may not mean equality of reward. The advantages claimed for this form of settlement as compared with those connected with individual holdings are, — (1.) Special knowledge governing and directing operations. (2.) The ability to procure and use to a moderate extent modern agricultural implements and other machinery. (3.) The establishment of divers industries subsidiary to agriculture, which means— (a.) Variety of employment suitable to sex, age, and capacity ; and (b.) Making the settlements as far as may be self-supporting. (4.) Absorption of the young labour growing up in the settlement, by increase or extension of industries : thus cutting off overflow into the labour-market, and giving permanence and security to family life.